Patomak’s Robert Greene, Partner, authored a new paper for the Carnegie Endowment for International Peace examining whether and how the Hormuz conflict may affect Beijing’s push to expand the renminbi’s role in the Middle East and in energy markets.

In the paper, Robert details various structural constraints, including a limited supply of offshore-accessible renminbi assets, the constrained impact of China’s central bank swap lines, underdeveloped renminbi derivatives markets, and the renminbi’s continued dependence on the dollar, that in the near term will keep impeding Beijing’s ambition to become a “financial power,” while continuing to give U.S. authorities significant strategic leverage even amid geopolitical shocks.

Read the full paper here.